An Emperical Study on Human Resource Management practices of Small and Medium Enterprises (SMEs) in Bangladesh

Abstract

Small and medium enterprises are playing a vital role for developing the economy of a nation as they play an essential role in poverty reduction through employment generation. So it is essential for SMEs to take human resources more seriously in this day and age as the good practice of HRM will maintain and attract highly qualified personnel therefore placing the organization at a competitive advantage. The aim of this study is to analyze the human resources practices of SMEs in Bangladesh. A sample of 160 respondents has been selected conveniently from Barisal City in Bangladesh to conduct this study. SPSS has been used to analyze collected data for descriptive statistics, t test, ANOVA, testing hypotheses and other general analysis. The result reveals that most of the enterprises are male oriented and educational level of 71.8% employees are up to SSC. In recruitment process, employers are relying on experienced but acquainted sources and 86.9% SMEs do not arrange any kinds of test for selection as well as 65.6% think that there is no necessity of training to perform their job. About 94.3% employees are working more than 8 hours in a day but among them only 15.60% get overtime facilities and 64.90% do not get overtime payment. But favorable colleagues’ behavior, overall job satisfaction, supervisor’s well behavior and convenient working environment are found as good human resource practices in SMEs. Study also found some drawbacks of the enterprises like lack of quality and expansion of product line, incapable of retaining skilled employees, to increase of investment, absence of modern technology, lack of convenient working environment and to increase of size and space of the organizations.

Keywords: HRM, SME, Employees, SPSS